Japan Exchange Group (8697) AI Stock Analysis

• Market Cap: ¥1.82T
• Dividend Yield: 3.2%
• Average Volume (3M): 4.05M
• Price to Earnings (P/E): 29.1
• Beta (1Y): 0.96
• Revenue Growth: 6.19%
• EPS Growth: 3.08%
• Country: JP
• Employees: 1,249
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 17.04
• Shares Outstanding: 1,031,785,300
• 10 Day Avg. Volume: 3,798,630
• 30 Day Avg. Volume: 4,050,496
• PEG Ratio: 56.31
• Price to Book (P/B): 4.66
• Price to Sales (P/S): 9.68
• P/FCF Ratio: 18.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,030.00
• Price Target Upside: 15.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥2,062.00 ▲(16.89% Upside)

The overall stock score is driven primarily by strong financial performance, characterized by robust revenue growth, profitability, and cash flow management. Technical analysis supports a positive trend, though caution is advised due to overbought signals. Valuation metrics suggest the stock may be overvalued, but the dividend yield offers some compensation.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective business operations, ensuring long-term sustainability and competitiveness.

Cash Flow Management

Strong cash flow management enhances financial flexibility, allowing for strategic investments and resilience against economic fluctuations.

Profitability Margins

High profitability margins reflect efficient operations and cost control, contributing to sustained financial health and shareholder value.

Negative Factors

Valuation Concerns

A high valuation could limit future stock price appreciation and may indicate market expectations that are difficult to meet, posing a risk to investors.

Market Overbought Signals

Overbought signals can lead to a potential pullback, affecting investor sentiment and potentially impacting short to mid-term stock performance.

Dividend Yield

While the dividend yield offers some compensation, it may not be sufficient to offset concerns about high valuation and potential stock price volatility.

Japan Exchange Group Business Overview & Revenue Model

Company Description

Japan Exchange Group, Inc. provides and operates markets for exchange-traded financial instruments in Japan. The company offers market facilities for securities, securities index futures, securities options, commodity futures, and commodity index futures trading, as well as financial instruments obligation assumption services; and publishes market quotations and facilitates fairness of securities trading. It is also involved in the self-regulatory operations, including listing examination, market surveillance and compliance, listed company compliance, and examination and inspection of participants. In addition, the company offers clearing and settlement services, as well as information services. Japan Exchange Group, Inc. was incorporated in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Japan Exchange Group generates revenue primarily through transaction fees collected from trading activities on its exchanges. This includes fees from the buying and selling of stocks, bonds, and derivatives. Additionally, JPX earns income from listing fees charged to companies that want to be publicly traded on its platforms. Another significant revenue source is the sale of market data and information services, which provides investors and institutions access to real-time trading data and analytics. The company also benefits from clearing and settlement services, earning fees associated with the processing of trades. Strategic partnerships with financial institutions and technology firms enhance its service offerings and can lead to increased trading volumes, further boosting revenue.

Japan Exchange Group Financial Statement Overview

Summary

Japan Exchange Group exhibits a robust financial performance across all verticals. The income statement highlights strong revenue growth and profitability margins, while the balance sheet indicates low leverage and effective equity utilization. The cash flow statement reflects solid cash generation and conversion, enhancing the company's financial flexibility.

Income Statement

The company shows a strong revenue growth trajectory with a consistent increase in total revenue over the years, particularly a 7.4% growth from 2024 to 2025. Gross profit margin remains high, consistently above 80%, indicating efficient cost management. Net profit margin is stable, slightly above 37%, suggesting effective profitability. EBIT and EBITDA margins also reflect strong operational efficiency, maintaining healthy levels. These factors contribute to a robust income statement performance.

Balance Sheet

The balance sheet reflects a sound financial structure. The debt-to-equity ratio is low at 0.15, indicating conservative leverage and low financial risk. Return on equity is consistently strong, showcasing effective use of equity to generate profits. The equity ratio is around 0.40%, reflecting a balanced capital structure with a significant portion of assets financed through equity. Overall, the company's balance sheet is stable with manageable debt levels.

Cash Flow

The company demonstrates strong cash flow management. Free cash flow has shown significant growth, particularly an increase of 15.6% from 2024 to 2025, indicating good cash generation capabilities. The operating cash flow to net income ratio exceeds 1, suggesting a healthy cash conversion from profit. Free cash flow to net income ratio is also favorable, reinforcing efficient cash utilization. These aspects highlight a positive cash flow position.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	167.42B	164.17B	157.80B	134.50B	135.64B	133.70B
Gross Profit	135.10B	133.33B	86.02B	66.93B	72.41B	72.30B
EBITDA	109.29B	107.45B	105.81B	87.27B	91.06B	91.61B
Net Income	62.35B	61.09B	60.82B	46.34B	49.95B	51.39B
Balance Sheet
Total Assets	72.35T	85.40T	80.68T	82.19T	71.46T	60.08T
Cash, Cash Equivalents and Short-Term Investments	61.84B	98.43B	128.02B	211.21B	211.35B	225.01B
Total Debt	52.49B	52.49B	52.48B	52.97B	52.47B	52.46B
Total Liabilities	72.02T	85.05T	80.34T	81.87T	71.14T	59.75T
Stockholders Equity	313.08B	340.82B	328.36B	312.73B	315.65B	321.39B
Cash Flow
Free Cash Flow	0.00	84.42B	63.97B	55.58B	43.26B	56.31B
Operating Cash Flow	0.00	86.14B	79.57B	66.88B	58.19B	71.75B
Investing Cash Flow	0.00	-61.22B	-7.17B	-8.52B	-13.30B	-1.51B
Financing Cash Flow	0.00	-54.50B	-43.20B	-52.90B	-59.75B	-33.93B

Japan Exchange Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1764.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8697, the sentiment is Positive. The current price of 1764 is above the 20-day moving average (MA) of 1720.33, above the 50-day MA of 1734.27, and above the 200-day MA of 1604.85, indicating a bullish trend. The MACD of 18.54 indicates Negative momentum. The RSI at 60.52 is Neutral, neither overbought nor oversold. The STOCH value of 83.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8697.

Japan Exchange Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8601	76 Outperform	¥2.11T	14.09	9.37%	4.13%	-0.87%	6.88%
8604	76 Outperform	¥4.36T	12.21	10.65%	3.93%	-2.45%	35.60%
8697	75 Outperform	¥1.82T	29.14	18.91%	3.20%	6.19%	3.08%
8309	72 Outperform	¥3.62T	12.36	9.00%	3.31%	16.24%	78.76%
8308	72 Outperform	¥4.13T	17.02	8.37%	1.80%	8.28%	28.63%
8473	72 Outperform	¥2.52T	8.32	20.02%	2.63%	23.96%	179.16%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Japan Exchange Group Corporate Events

Japan Exchange Group to Cancel Over 12 Million Treasury Shares

Japan Exchange Group, Inc. has announced the cancellation of 12,793,030 treasury shares, which constitutes 1.22% of its total issued shares. This strategic move, set to be executed by November 12, 2025, is likely aimed at optimizing the company’s capital structure and potentially enhancing shareholder value.

The most recent analyst rating on (JP:8697) stock is a Buy with a Yen2062.00 price target. To see the full list of analyst forecasts on Japan Exchange Group stock, see the JP:8697 Stock Forecast page.

Japan Exchange Group Reports Strong Financial Growth and Announces Stock Split

Japan Exchange Group, Inc. reported a notable increase in its financial performance for the six months ending September 30, 2025, with operating revenue rising by 9.2% year-on-year. The company also announced a 2-for-1 stock split effective October 1, 2024, which impacted the calculation of basic earnings per share. This financial growth and strategic stock split position the company favorably in the market, potentially benefiting stakeholders by enhancing liquidity and shareholder value.

The most recent analyst rating on (JP:8697) stock is a Buy with a Yen2062.00 price target. To see the full list of analyst forecasts on Japan Exchange Group stock, see the JP:8697 Stock Forecast page.